New Australia, S'pore properties boost A-Reit's DPU by 9.9%

Ascendas Real Estate Investment Trust (A-Reit) posted higher distributable income for the third quarter, thanks to new properties acquired in Australia and Singapore.

Distributable income for the three months to Dec 31 grew 11.7 per cent to $96.6 million, compared with $86.4 million in the same period a year earlier. Distribution per unit (DPU) increased 9.9 per cent to 3.946 cents. Gross revenue for the quarter increased by 12.9 per cent to $193.8 million, while net property income jumped 24.1 per cent to $142.2 million.

"In the third quarter, we announced acquisitions worth approximately $1.5 billion in Australia and Singapore," Mr Tan Ser Ping, chief executive and executive director of the Reit manager, said in a press release yesterday.

"The acquisitions, comprising 27 freehold logistics facilities in Australia and a business park property in Singapore, are aligned with our strategy to build a high-quality and diversified portfolio to deliver sustainable returns for our unitholders," he said.

The Reit manager also announced the retirement of Mr Tan, 57, on March 31, in a separate Singapore Exchange filing yesterday.

Occupancy rates for the overall portfolio was 89.2 per cent at the end of December last year.

The Reit recorded a positive rental reversion of 7.3 per cent across all segments of its Singapore portfolio.

Industrial property market conditions in Singapore are expected to remain challenging, said the Reit manager.

"With significant new supply and tepid economic growth both in Singapore and globally, there may be pressure on occupancy growth in Singapore," it added.

The recent acquisition of more than A$1 billion (S$1 billion) worth of properties has enabled A-Reit to gain a strategic footprint in the logistics market in Australia.

The Reit manager said that the demand for logistics space is expected to be strong, backed by a healthy jobs market, low interest rates, lower Australian dollar and firm consumer spending.

A-Reit units closed five cents up at $2.17 yesterday, ahead of its results announcement.

This article was first published on January 23, 2016.
Get a copy of The Straits Times or go to for more stories.